Talkspace (NASDAQ:TALK) vs. SBC Medical Group (NASDAQ:SBC) Critical Review

SBC Medical Group (NASDAQ:SBC) and Talkspace (NASDAQ:TALK) are both small-cap healthcare companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, dividends, valuation, earnings, profitability, risk and institutional ownership.

Analyst Ratings

This is a summary of recent recommendations for SBC Medical Group and Talkspace, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
SBC Medical Group	1	0	2	0	2.33
Talkspace	1	7	1	0	2.00

SBC Medical Group presently has a consensus target price of $8.50, suggesting a potential upside of 132.30%. Talkspace has a consensus target price of $5.56, suggesting a potential upside of 5.95%. Given SBC Medical Group’s stronger consensus rating and higher probable upside, equities research analysts plainly believe SBC Medical Group is more favorable than Talkspace.

Institutional & Insider Ownership

60.8% of SBC Medical Group shares are owned by institutional investors. Comparatively, 57.4% of Talkspace shares are owned by institutional investors. 81.7% of SBC Medical Group shares are owned by insiders. Comparatively, 23.5% of Talkspace shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares SBC Medical Group and Talkspace’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
SBC Medical Group	27.99%	18.47%	13.10%
Talkspace	0.08%	0.17%	0.14%

Risk and Volatility

SBC Medical Group has a beta of 0.59, indicating that its share price is 41% less volatile than the S&P 500. Comparatively, Talkspace has a beta of 1.1, indicating that its share price is 10% more volatile than the S&P 500.

Valuation & Earnings

This table compares SBC Medical Group and Talkspace”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
SBC Medical Group	$173.61 million	2.16	$50.99 million	$0.47	7.79
Talkspace	$228.87 million	3.84	$7.79 million	N/A	N/A

SBC Medical Group has higher earnings, but lower revenue than Talkspace.

Summary

SBC Medical Group beats Talkspace on 9 of the 12 factors compared between the two stocks.

About SBC Medical Group

SBC Medical Group Holdings Incorporated, through its subsidiaries, provides services to support the operation of clinics which deliver specialized medical services in the areas of cosmetic medicine, esthetic dentistry and Androgenetic Alopecia or AGA, primarily in Japan and centered on the SBC Shonan Beauty Clinic Brand. SBC Medical Group Holdings Incorporated, formerly known as Pono Capital Two Inc., is based in TOKYO.

About Talkspace

Talkspace, Inc. operates as a virtual behavioral healthcare company in the United States. The company offers psychotherapy and psychiatry services through its platform to individuals, enterprises, and health plans and employee assistance programs. It provides text, audio, and video-based psychotherapy from licensed therapists. The company offers Talkspace Employee Assistance Program (EAP) and Talkspace Behavioral Health plan (BH) that provides online therapy to members through BH and EAP offerings; and Talkspace for Business for members to access its platform services on a benefit plan paid by the enterprise. It serves its platform through third-party platforms or marketplace, such as Apple App Store and Google Play App Store. Talkspace, Inc. was founded in 2012 and is headquartered in New York, New York.